Author: admin

Categories
31 Days to More Effective Compliance Programs

Day 12 – Financial Incentives for Compliance

One of the areas that many companies have not paid as much attention to in their compliance programs is compensation and incentives. However, the DOJ and SEC have long made clear that they view monetary structure for compensation, rewarding those employees who do business in compliance with their employer’s compliance program, as one of the ways to reinforce the compliance program and the message of compliance.

This was made clear again in the Monaco Memo, which stated, “Corporations can help deter criminal activity if they reward compliant behavior and penalize individuals who engage in misconduct. Compensation systems that clearly and effectively impose financial penalties for misconduct can incentivize compliant conduct, deter risky behavior, and instill a corporate culture in which employees follow the law and avoid legal “gray areas.”

Moreover, the Monaco Memo tied compensation to a company’s culture of compliance. It stated, “Similarly, corporations can promote an ethical corporate culture by rewarding those executives and employees who promote compliance within the organization. Prosecutors should also consider whether a corporation’s compensation systems provide affirmative incentives for compliance-promoting behavior. Affirmative incentives include, for example, the use of compliance metrics and benchmarks in compensation calculations and the use of performance reviews that measure and reward compliance-promoting behavior, both to the employee and any subordinates whom they supervise. When effectively implemented, such provisions incentivize executives and employees to engage in and promote compliant behavior and emphasize the corporation’s commitment to its compliance programs and culture.”

Yet compensation incentives have long been key to any best practices compliance program. As far back as 2004, then SEC Director of Enforcement Stephen M. Cutler noted that integrity, ethics, and compliance needed to be part of promotion, compensation, and evaluation processes: “At the end of the day, the most effective way to communicate that “doing the right thing” is a priority, is to reward it.”

The 2020 FCPA Guidance, 2nd edition, stated the “DOJ and SEC recognize that positive incentives can also drive compliant behavior. These incentives can take many forms, such as personnel evaluations and promotions, rewards for improving and developing a company’s compliance program, and rewards for ethics and compliance leadership.” The Monaco Memo takes it a step further by asking more broadly has your company, “incentivized employee behavior as part of its efforts to create a culture of ethics and compliance within its organization.”

Three key takeaways:

  1. The DOJ and SEC have long advocated compensation as a way to motivate employees into ethical and compliant behaviors
  2. Keep the compliance aspects of your compensation structure simple and easy for your employees to understand
  3. Have full transparency in the framework of your compensation structure
Categories
Everything Compliance

Episode 109, The New Year’s Edition

Welcome to the only roundtable podcast in compliance as we celebrate our second century of shows. Everything Compliance has been honored by W3 as the top talk show in podcasting. In this episode, we have the quintet of Jay Rosen, Jonathan Armstrong, Jonathan Marks, Tom Fox, and Matt Kelly, all discussing issues they are looking at as we begin 2023. We conclude with our fan-fav Shout Outs and Rants section.

  1. Matt Kelly looks at some of the ESG issues he will be following in 2023, including SEC rules around ESG, potential audit requirements, who will hold this function internally, and the new role of the ESG Controller. He rants about Zulily and its SOX compliance failures which allowed an employee to embezzle over $300,000.

2. Jonathan Marks looks at corporate governance issues in 2023, including board structure and guidance, recent Board failures, and Board oversight and monitoring. He shouts out to the NFL to cancelling the game between the Bengals and Bills.

3. Tom Fox shouts out to the 50th anniversary of School House Rock and lists his top five.

4. Jonathan Armstrong gives us a preview of 5 key issues he is following for 2023: ESG, GDPR fines, ransomware, supply chain risk issues, and crypto scams. He rants about the mistreatment of Prince Harry’s dog and asks if the dog was traumatized when Prince William knocked his brother (Prince Harry) down and broke the dog’s food bowl.

5. Jay Rosen reviews acronyms that drive him crazy. He shouts out to EMS personnel in Cincinnati for training and being prepared when Damar Hamlin went into cardiac arrest during the Bills game and saved his life.

The members of Everything Compliance are:

•       Jay Rosen– Jay is Vice President, Business Development Corporate Monitoring at Affiliated Monitors. Rosen can be reached at JRosen@affiliatedmonitors.com

•       Karen Woody – One of the top academic experts on the SEC. Woody can be reached at kwoody@wlu.edu

•       Matt Kelly – Founder and CEO of Radical Compliance. Kelly can be reached at mkelly@radicalcompliance.com

•       Jonathan Armstrong –is our UK colleague, who is an experienced data privacy/data protection lawyer with Cordery in London. Armstrong can be reached at jonathan.armstrong@corderycompliance.com

•       Jonathan Marks is Partner, Firm Practice Leader – Global Forensic, Compliance & Integrity Services at Baker Tilly. Marks can be reached at jonathan.marks@bakertilly.com

The host and producer, ranter (and sometime panelist) of Everything Compliance is Tom Fox, the Voice of Compliance. He can be reached at tfox@tfoxlaw.com. Everything Compliance is a part of the Compliance Podcast Network.

Categories
Daily Compliance News

January 12, 2023 – The Spies Cash in Corruption Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee and listen to the Daily Compliance News. All from the Compliance Podcast Network. Each day we consider four stories from the business world, compliance, ethics, risk management, leadership, or general interest for the compliance professional.

Stories today include:

  • The ex-Austrian minister was found not guilty of corruption. (Reuters)
  • The coinbase compliance team won’t be whacked. (WSJ)
  • SEC sues Covington over a hack. (Reuters)
  • EU corruption investigation looks at Morocco. (FT)
Categories
Wirecard

The Wirecard Saga – Blunt Force Trauma

Welcome to Season 3 of Lies, Spies & Corporate Crimes: The Wirecard Saga. The Wirecard Saga has become the world’s leading source of all things Wirecard. In Lies, Spies & Corporate Crimes: The Wirecard Saga, Mikhail Reider-Gordon, Managing Director of Institutional Ethics & Integrity at Affiliated Monitors, looks at the biggest financial scandal in post-war Germany from a variety of angles. In this episode, Mikhail continues her exploration of those persons, entities, and governments who have been damaged, some beyond repair, by Wirecard and the nuclear fallout from its scandal.

Some of the highlights include:

  • Hello! Marsalek
  • Austria’s DSN finds the unexploded ordinance.
  • Gattringer rides again
  • Marsalek and Grechenig RISE
  • KPMG to Benko, you need DSIRF
  • Subzero attacks
  • Beware of partners selling software
  • Signa and Benko raided
  • Germany’s Arne Schonbohm fired
Categories
Jamming with Jason

Everybody Hurts… Sometimes

You may feel like everyone else’s life is going perfectly, and you are the only one struggling or dealing with challenges, but “everybody hurts sometimes,” and when you do, “take comfort in your friends” and “hold on.”

It helps to know that you are not alone. Whatever you are dealing with, someone else is or has dealt with that same thing too. Life doesn’t always go how we want it to, and we can feel very alone at those times. I’ve felt that way, and I’m sure you have too.

“When your day is long, And the night, the night is yours alone. When you’re sure you’ve had enough

Of this life, well, hang on… Take comfort in your friends. Everybody hurts… sometimes” – Everybody Hurts by R.E.M.

FOR FULL SHOW NOTES AND LINKS VISIT:

E305 Everybody Hurts… Sometimes

SUPPORT THE PODCAST:

DO YOU LOVE MUSIC LIKE ME?

If so, learn how to use it to intentionally heal and change your emotions and use it for entertainment at: https://bit.ly/MeffordMusic.

LIKE THE PODCAST?

If you’re the kind of person who likes to help others, then share this with your friends and family. If you find value, they will too. Please leave a review [https://itunes.apple.com/us/podcast/jamming-with-jason-mefford/id1456660699] on Apple Podcasts so we can reach more people.

Join my Facebook group: https://www.facebook.com/groups/beinguniquely

OTHER RESOURCES YOU MAY ENJOY:

My YouTube channel [https://www.youtube.com/c/jasonleemefford] and make sure to subscribe

My Facebook page [https://www.facebook.com/jammingwithjasonmefford]

My LinkedIn page [https://www.linkedin.com/in/jasonmefford/]

My website [https://jasonmefford.com]

STAY UP TO DATE WITH NEW CONTENT:

It can be difficult to find information on social media and the internet, but you get treated like a VIP and have one convenient list of new content delivered to your inbox each week when you subscribe to Jason’s VIP Lounge at: https://jasonmefford.com/vip/ plus; that way, you can communicate with me through email.

Categories
Greetings and Felicitations

Podfest Expo 2023 – Jen Hardy on 5 steps to get the most out of PodfestExpo

In this episode of the PodfestExpo 2023 Preview Podcasts series, I visit with Jen Hardy, host of the podcast Hardy Mom. We discuss her presentation at PodfestExpo on getting the most out of attending PodfestExpo 2023. Some of the issues we tackle in this podcast are:

  • Why should newbies (or others) attend this presentation?
  • What key steps can you take to get the most out of your Podfest experience?
  • Why joining the Podfest family can be critical for your pod.

I hope you can join me at PodfestExpo 2023, hosted by Podfest Global. This year’s event will be January 26-29, 2023, at the Renaissance Orlando at Seaworld in Orlando, Florida. The line-up of this year’s event is first-rate, with some of the top names in podcasting.

Podfest Expo is a community of people interested in and passionate about sharing their voice and message with the world through the powerful mediums of audio and video. We’re proud to unite as many people as possible to learn, get inspired, and grow better together.

 PodfestExpo is so much more than just a mere conference. While we pride ourselves on featuring the most engaging speakers, exciting topics, and in-depth content, the thing that sets PodfestExpo event apart from all others is the tight-knit community we’ve been building since 2013. You don’t just attend a Podfest event – you become part of the Podfest family.

 Whether you’re new to podcasting or a veteran podcaster looking to innovate and improve your podcast, our easy-to-understand Conference Topics allow you to customize a daily agenda based on what you’re most interested in learning. No matter your skill level or experience, PodfestExpo 2023 has plenty to offer!

 I hope you can join me at the event. For information on the event, click here. As an extra benefit to listeners of this podcast, Podfest Expo is offering a discount on the registration price. Enter discount code Fox10.

 PodfestExpo 2023 is a production of Podfest Global, which is the sponsor of this podcast series.

Categories
31 Days to More Effective Compliance Programs

Day 11 – Tailored and Effective Compliance Training

One of the key goals of any compliance program is to train employees in awareness and understanding of the FCPA and your specific company compliance program and to create and foster a culture of compliance. While it seems axiomatic that compliance training is a mainstay of any best practices compliance program, the conversation around training has evolved over the years. Beginning in the fall of 2016, through the announcement of the FCPA Enforcement Pilot Program, the DOJ began to talk about whether you have determined the effectiveness of your training. This conversation continued with the 2017 Evaluation, which asked, “How has the company measured the effectiveness of the training?” This point has bedeviled many compliance professionals yet is now a key metric for the government in evaluating compliance training. This is not simply measuring training attendance and completion rates. This is true testing effectiveness.

It evolved further in the 2020 Update with the mandate that training must be “truly effective.” Finally, the training must be presented in a language the employees understand, which means in a local language, if the training is outside the US or other non-English-speaking countries. The 2017 Evaluation focused on whether your training was “tailored” for the audience. This added two requirements. The first was to assess your employees for risk to determine the type of training you might need to deliver by risk ranking your employees. Obviously, the sales force would be the highest risk, but others may also be deserving of high-risk training. From this risk ranking, you were required to develop tailored training for the risks those employees face.

What are ‘espresso shots’ of training to help facilitate effective training? Tina Rampino, Associate Managing Director at K2 Integrity, suggests keeping your compliance training segments concise as “shorter, bite-size learning is a trend in training programs.” This means that instead of offering half-day and full-day sessions, break programs into shorter segments of 20 minutes or less, which are easier for participants to absorb – and schedule. Another example is that short cartoons or animated videos can be excellent quarterly reminders. Done properly, they do not feel like an assessment or certainly not a ‘check-the-box’ exercise. The bottom line is that with all training most employees must undergo now and even more so in the continued time of the Covid-19 Omicron Variant, espresso shots give people back a lot of time.

Three key takeaways:

  1. How and why have you tailored your compliance training, and how do you determine its effectiveness?
  2. Try an espresso shot of training.
  3. How is your training presented: both in languages and media?
Categories
Great Women in Compliance

New Year’s Resolutions: A Conversation with the Compliance Community

Welcome to the Great Women in Compliance Podcast, co-hosted by Lisa Fine and Mary Shirley and to the new GWIC year. Mary and Lisa are back, and looking forward to another season of interesting discussions with fabulous people where we can learn, talk and build our community.  We are always looking to continue these discussions, so please reach out to us, and don’t miss Mary’s monthly column on Corporate Compliance Insights called “Living Your Best Compliance Life.”

In this episode, Lisa and Mary kick off the year with a New Year’s Resolution themed-episode discussing what compliance officers should commit to, focus on and/or prioritize in 2023.   They discuss various substantive issues, such as the DOJ statements on ephemeral communications, what they understand and how much they are looking forward to the forthcoming guidance. Mary also discusses some of the recent cases and developments at the end of 2022, and Lisa includes her thoughts about the intersection of ESG and Compliance.  They also discuss the future of remote work in compliance, and how that is impacting the job market.

No Mary and Lisa discussion is not complete without some work/life comments and resolutions, so those will be shared as well.  As always, they include the hope that everyone is sending the elevator back down.

The Great Women in Compliance Podcast is on the Compliance Podcast Network with a selection of other Compliance related offerings to listen in to.  If you are enjoying this episode, please rate it on your preferred podcast player to help other likeminded Ethics and Compliance professionals find it.  If you have a moment to leave a review at the same time, Mary and Lisa would be so grateful.  You can also find the GWIC podcast on Corporate Compliance Insights where Lisa and Mary have a landing page with additional information about them and the story of the podcast.  Corporate Compliance Insights is a much-appreciated sponsor and supporter of GWIC, including affiliate organization CCI Press publishing the related book; “Sending the Elevator Back Down, What We’ve Learned from Great Women in Compliance” (CCI Press, 2020).

If you enjoyed the book, the GWIC team would be very grateful if you would consider rating it on Goodreads and Amazon and leaving a short review.  Don’t forget to send the elevator back down by passing on your copy to someone who you think might enjoy reading it when you’re done, or if you can’t bear parting with your copy, consider it as a holiday or appreciation gift for someone in Compliance who deserves a treat.

You can subscribe to the Great Women in Compliance podcast on any podcast player by searching for it and we welcome new subscribers to our podcast.

Join the Great Women in Compliance community on LinkedIn here.

Categories
Compliance Into the Weeds

DFS Fines Coinbase

The award-winning, Compliance into the Weeds is the only weekly podcast that takes a deep dive into a compliance-related topic, literally going into the weeds to explore a subject more. In this episode, Matt and I take a look at the recent NY state Department of Financial Services sanction involving the crypto trading platform Coinbase, which just agreed to pay $50 million to the DFS and to spend another $50 million over the next two years to improve its compliance program.

Some of the highlights include:

·      What was the fine and associated spending for?

·      What did the Coinbase compliance program fail on?

·      How did Coinbase’s explosive growth fuel a culture of non-compliance?

·      How did Coinbase fall further and further behind?

·      Why and how did the Coinbase solution worsen the problem?

·      Why does a company need to start with a solid foundation of clearly defined procedures?

·      What is the role of effective and efficient technology?

·      What are the lessons learned?

 Resources

Matt Kelly in Radical Compliance

Categories
Daily Compliance News

January 11, 2023 – The Firm Hours Down Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee and listen to the Daily Compliance News. All from the Compliance Podcast Network. Each day we consider four stories from the business world, compliance, ethics, risk management, leadership, or general interest for the compliance professional.

Stories we are following in today’s edition of Daily Compliance News:

  • Danone sued over plastic use. (NYT)
  • Can the ANC or South Africa save itself from corruption? (Foreign Affairs)
  • Air India is embarrassed by the pee scandal. (BBC)
  • Billable hours drop in 2022. (FT)